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Cambria Hotels & Suites Franchise ProfileLodging & Leisure > Lodging |
What are the Initial Investment Requirements for a Cambria Hotels & Suites Franchise?
To open a Cambria Hotels & Suites franchise, you will need to prepare for a significant initial investment ranging from $14,788,700 to $28,663,339. The initial franchise fee is set at $60,000, with ongoing royalty fees at 6% and a marketing fee of 3%. Additionally, you should have liquid cash available between $275,000 and $425,000, along with a net worth of $1,000,000 to $5,000,000. Understanding these financial commitments is essential for prospective franchisees.
What is the Revenue Potential for Cambria Hotels & Suites Franchisees?
Cambria Hotels & Suites franchises have shown promising revenue potential, with an average annual revenue of approximately $1,297,700 per unit. The median revenue stands at $1,352,000, while the lowest recorded annual revenue is $55,640, and the highest reaches $1,260,000. This range highlights the variability in performance, but overall, the brand's established presence in the hospitality industry suggests a solid opportunity for franchisees to achieve substantial earnings.
What are the Operational Costs for Running a Cambria Hotels & Suites Franchise?
When operating a Cambria Hotels & Suites franchise, you can expect annual operating expenses to total around $625,000. This includes costs for rent and utilities ($75,000), marketing and advertising ($75,000), sales and accounting ($50,000), management and administrative salaries ($250,000), insurance ($75,000), and other operational expenses ($100,000). These figures are crucial for potential franchisees to consider when assessing profitability and financial planning.
What is the Breakeven Timeline for a Cambria Hotels & Suites Franchise?
Franchisees can anticipate a breakeven period of approximately 24 months after opening their Cambria Hotels & Suites location. This timeline aligns with the investment payback period, indicating that franchisees can expect to recoup their initial investments within the same timeframe. Understanding this breakeven point is vital for financial forecasting and long-term planning for new franchise owners.
Cambria Hotels & Suites Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Cambria Hotels & Suites Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 50 | 55 | 65 |
| Net Change YoY | 5 | 10 | |
| Franchised Units | 45 | 49 | 59 |
| Net Change YoY | 4 | 10 | |
| Corporate Units | 5 | 6 | 6 |
| Net Change YoY | 1 | 0 |
Investment Overview
Cambria Hotels & Suites offers a significant investment opportunity in the hospitality sector, requiring an initial investment ranging from $14,788,700 to $28,663,339. The initial franchise fee is set at $60,000, alongside ongoing royalty and marketing fees of 6% and 3% of gross sales, respectively. Potential franchisees should prepare for a cash requirement between $275,000 and $425,000, along with a net worth threshold of $1,000,000 to $5,000,000.
Financial Performance
On average, each Cambria hotel generates annual revenue of approximately $1,297,700, with a median revenue of $1,352,000. The revenue range varies widely, with the lowest reported at $55,640 and the highest at $1,260,000. Franchisees can expect to reach breakeven within 24 months, making it a potentially lucrative investment for those who meet the financial requirements.
Franchised and Corporate Units
As of 2022, Cambria Hotels & Suites operates a total of 65 units, with 59 being franchised and 6 corporate-owned. The growth trajectory has been steady, increasing from 50 units in 2020 to 65 in 2022. This indicates a robust expansion strategy, providing opportunities for new franchisees to join a growing brand.
Average Operating Expenses
Franchisees should be aware of the average operating expenses, which total approximately $625,000 annually. Key expenses include rent and utilities at $75,000, marketing and advertising at $75,000, and management salaries at $250,000. Understanding these costs is crucial for effective budgeting and maximizing profitability.
Royalty and Marketing Contributions
Cambria Hotels & Suites imposes a royalty fee of 6% on gross sales along with a 3% marketing fee. These contributions are essential for brand development and national marketing campaigns, which help drive customer traffic and enhance brand visibility. Franchisees must factor these ongoing fees into their financial planning.
Company Vision
Cambria Hotels & Suites aims to redefine the upscale hotel experience by providing modern, stylish accommodations that cater to both business and leisure travelers. The brand focuses on delivering exceptional service and amenities that promote comfort and convenience, positioning itself as a leader in the midscale hotel market. This vision is integral to attracting franchisees who share a commitment to quality and guest satisfaction.
Frequently Asked Questions
The initial investment for a Cambria Hotels & Suites franchise ranges from $14,788,700 to $28,663,339, which includes the franchise fee and other startup costs.